What is personal umbrella insurance?
Personal umbrella insurance or excess liability as it is sometimes referred to is designed to protect the insured in the event they find themselves in a lawsuit and/or other undue expenses resulting from a covered claim or loss. The personal umbrella provides coverages for situations such as accidents on your property or away from it such as an auto accident. Umbrella coverages act just like a real umbrella you would use in the event of rain or other bad weather situations. They are there to shelter you from potential large financial loss in the event you are found to be legally liable for a loss or claim. Often times the price for an umbrella policy is very low in conjunction to the value of financial protection you receive in the form of policy coverages. Umbrella insurance is typically designed to go over the top of your home, auto, and recreational vehicles liability limits and is typically at least $1,000,000 worth of coverage/protection.
Situations it can protect you from
Umbrella coverage can afford you coverage in situations such as lawsuits for slander, malicious prosecutions, and for false arrest or imprisonment. Other types of umbrella liability coverages that may come into play for liability are someone being injured at your home by falling or animal bite, a serious auto accident, or property damage you cause and are found to be legally liable to pay. The truth is that for the relatively low cost associated with purchasing a personal umbrella policy – the protection and peace of mind that comes with knowing that everything you own (home, auto’s, children’s college fund, retirement) are protected in case of a freak event are well worth it.
Details on personal umbrella insurance
We have been asked on more than one occasion “What is the right or proper amount of insurance to purchase to properly cover my family and business?” All we can do is advise you on what you currently have and give you the coverage options and pricing to see what fits within your budget the best. You may still not have enough coverage, but at least you are able to make an informed decision as often times we here from new clients they were never offered or quoted a personal umbrella policy. There are certain exceptions and limitations when it comes to what each insurance company will or will not cover in the event of a loss or claim. It is always best to review all your insurance coverages with your agent annually. For any agent to be able to properly advise you of insurance coverages and your specific needs, they need to gather certain information such as the underlying limits of liability on your homeowners, auto and recreational policy. Most umbrella insurance carriers require you to carry certain limits on your other policies to properly insure there are no gaps in coverages between the policies when it comes to paying a claim. Speak with an insurance agent today about adding or increasing your umbrella insurance coverage.